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What Works in Securities Laws?

Author

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  • RAFAEL LA PORTA
  • FLORENCIO LOPEZ‐DE‐SILANES
  • ANDREI SHLEIFER

Abstract

We examine the effect of securities laws on stock market development in 49 countries. We find little evidence that public enforcement benefits stock markets, but strong evidence that laws mandating disclosure and facilitating private enforcement through liability rules benefit stock markets.

Suggested Citation

  • Rafael La Porta & Florencio Lopez‐De‐Silanes & Andrei Shleifer, 2006. "What Works in Securities Laws?," Journal of Finance, American Finance Association, vol. 61(1), pages 1-32, February.
  • Handle: RePEc:bla:jfinan:v:61:y:2006:i:1:p:1-32
    DOI: 10.1111/j.1540-6261.2006.00828.x
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    JEL classification:

    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation

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